SNP and Greens vote down Labour bid to launch Peter Murrell inquiry

MSPs have voted down Labour’s attempt to launch a parliamentary inquiry into issues relating to Peter Murrell’s embezzlement of the SNP.

Instead, the Scottish Parliament backed the Greens’ call for an independent review of all political party finances.

Using the first opposition debate of the new session, Scottish Labour leader Anas Sarwar said the crime had raised “serious issues” about the “systematic culture of cover-up and secrecy” within the governing party.

His party was backed by Reform, the Lib Dems and the Conservatives – but the SNP and Greens voted against.

Speaking after the vote, Sarwar accused the two parties of having "teamed up to deny Scots answers".

Parliamentary business minister Jamie Hepburn said that such an inquiry would have a conflict of interest “baked into the very structure”, because MSPs sitting on it would have a “direct material interest in the outcomes of its findings”.

Green co-leader Ross Greer acknowledged that while the Murrell case had undermined public trust, it was one of several financial scandals and any inquiry would be “hyper-partisan” and have “no clear objective other than bashing the party of government”.

The Green amendment was supported by 70 MSPs and voted against by 53. It replaced the test of Labour’s motion in full. The amended motion was then agreed by 71 votes to 50.

The SNP’s amendment, which also sought to replace Labour’s motion, was voted down by 68 to 55.

Opening the debate, Sarwar said that while “responsibility for Peter Murrell’s crimes lie with Peter Murrell”, other issues went beyond the former chief executive.

“This scandal has implications and lessons for the Scottish Government, for ministers, for Police Scotland, for the lord advocate, for the Crown Office and Procurator Fiscal, for Electoral Commission, for the Scottish Legal Aid Board, for His Majesty’s Revenue and Customs, and for those who administer short money on behalf of taxpayers,” he said.

Specifically, he said the lord advocate had questions to answer over sharing information about the charges against Murrell with the SNP leadership before it was made public, while the Crown Office and chief constable should be asked about the length of time it took to conduct the investigation and bring charges.

He also said there were unanswered questions about legal aid being awarded to Murrell, how much the SNP may owe HMRC for false VAT claims, and about the ring-fenced independence fund.

The Labour leader added that John Swinney, Nicola Sturgeon and others who “held positions of responsibility who have been rewarded for their loyalty with ministerial office” also had questions to answer.

Responding for the government, Hepburn acknowledged the matter had impacted public trust but he said the parliament’s response must be “discipline” and seek not to “protect any single party” or “promote any other”.

He said an inquiry would become a “partisan, political exercise” and, in addition, members of the public would doubt whether it could operate in a non-party political fashion.

He added the voters “did not send us here to spend parliamentary time conducting political post-mortems into the internal governance of rival parties”.

Greer also acknowledged the damage the Murrell case had done to public trust, but he went on to highlight other issues which also eroded trust – such as the influence of wealthy donors, dark money and foreign influence on politics.

On the question of a parliamentary inquiry, he said: “The SNP were the victims of a crime, but the SNP’s internal governance processes and culture also failed. The crime was a matter for the police and prosecution service – they have done their job.

“The SNP’s internal governance arrangements are for them. If I was a member of the SNP, I would demand a root and branch review. But I am not… and it is no more my job to tell them how to run their party that it would be any other member in this place to tell me how to run the Scottish Green Party.”

Murrell pleaded guilty to embezzling over £400,000 from the party over a period of 12 years last month.

Some of that time coincides with the eight and a half years his now-estranged wife Nicola Sturgeon was leader of the party. She has been cleared of any wrongdoing by the police.

Murrell is expected to be sentenced later this month.

Swinney has repeatedly pushed back against the idea of a parliamentary inquiry into the matter. He said during FMQs last week there was “no higher or more forensic investigation” than the police investigation that had taken place.

Speaking after Wednesday vote, Swinney said: “Tonight MSPs have agreed there must be a fully independent review into the funding of all political parties. Labour tried to exploit the fact that the SNP has been a victim of a crime for their own political advantage, but their cynical stunt has boomeranged spectacularly.

“The SNP has nothing to fear from a properly independent review. Under my leadership, I have made sure that the SNP’s house is in order – our spectacular election victory last month could not have been possible without us winning the trust not only of our dedicated members, but more fundamentally with the people of Scotland. 

“After constantly accusing the SNP of secrecy, Labour now find themselves in the farcical position of failing to vote with the SNP for a properly independent review of the funding of all political parties. They are clearly terrified of holding themselves to the same standard as they hold others, and people will rightly be asking what it is that they have to hide."

The Commons’ Scottish Affairs Committee has agreed to wait to make a decision on whether it will hold an inquiry into the matter, with members agreeing it would be better for a Holyrood committee to take on.

It may now revisit that decision.

In the meantime, the committee has agreed to write to the Clerk of the House, the Speaker, and the Electoral Commission about the potential implication of public funds in the embezzlement of SNP funds.